Art Chang is amazed that Google's (NASDAQ:GOOG) ($616.32) market cap now exceeds Time Warner (NYSE:TWX) ($19.10), Disney (NYSE:DIS) ($35.39), and News Corp (NASDAQ:NWS) ($24.48), combined. He's right to be amazed but when you think about it from the point of buying a business it's not that amazing.
Google is in a growth business. Those other companies are not.
At 30 times next years earnings Google is a bargain compared to most companies with its growth rate. However, their profits are all search. At some point a better product will come along. The question, will Google have diversified enough by then.
Disclosures. I do not own Google (GOOG), Time Warner(TWX), Disney (DIS) or News Corp (NWS). Of the three I'd rather own Google but all of them have too much downside. I would look at TWX, DIS, or TWX if they were much cheaper. They all look like fully valued, value stocks right now.
I have traded Google both long and short in the last two years. I also bought google the day of the IPO at around $95 and sold at $165. (way too soon!)